Updated almost 11 years ago on . Most recent reply
How much to rehab?
Not sure if this goes here, but here it goes. So I recently purchased a multifamily home in a great location, near bus lines, freeway on ramp, shopping center 2 mins away with gym, restaurants, gas station, grocery store etc. 5 mins to walmart, theaters, medical clinic, higher end restaurants etc. Also only 5-10 mins from Military base. The house is an older house and rents for 1700/month, other comps in the area rent for 2300/month (upgraded). The kicker is that they have better neighbors and is located 1 street up with newer houses. My neighbors have extended family, dogs, probably illegal additions, minimal yard work etc. couple houses down either direction the houses are better maintained.
so my question is if I go with a rehab meaning re-tile kitchen and bathroom floors new cabinets and solid surface countertops paint etc, but no taking down walls. will I be able to get the rental prices of comp properties or should I just do a simple update with laminate countertops,keep old tile flooring in bath and kitchen, vinyl plank flooring through rest of house, salvage and paint cabinets, update hardware? the second option I feel confident that I would get 2000/month.
I dont plan on ever selling this place but a nice forced appreciation would be good to take equity out to reinvest.